Questions from College Accounting

Q: What are the two categories of intangible assets for the purposes of

What are the two categories of intangible assets for the purposes of disposing of their capitalized costs?

Q: What are the rules for determining the amount of cost in each

What are the rules for determining the amount of cost in each category of intangibles in Question 22 to be removed from the asset account during each accounting period?

Q: How is the amount of impairment to be recorded determined?

How is the amount of impairment to be recorded determined?

Q: Is MACRS used for federal income tax rules acceptable under GAAP?

Is MACRS used for federal income tax rules acceptable under GAAP?

Q: Which method will give you a higher amount of depreciation expense in

Which method will give you a higher amount of depreciation expense in the later years of an asset’s life, straight-line or declining-balance? Explain.

Q: What is the basic test for determining whether impairment does, in

What is the basic test for determining whether impairment does, in fact, exist?

Q: Under what circumstances is the units-of-production method of

Under what circumstances is the units-of-production method of depreciation especially desirable?

Q: What information related to the company’s property, plant, and equipment

What information related to the company’s property, plant, and equipment must be presented in the financial statements and in the notes to the financial statements?

Q: 1. In discussing a firm’s latest financial statements, a manager

1. In discussing a firm’s latest financial statements, a manager says that it is the “results on the bottom line” that really count. What does the manager mean? 2. If a firm’s expenses equal or exceed...

Q: 1. The vice president of the manufacturing company for which you

1. The vice president of the manufacturing company for which you are the accountant has suggested to the president that all prices should be established on the basis of direct costing. Respond to this...